New approach needed
These sectors play a big role in domestic consumption, but reduction in government spending will push them to change their focus from government clients to ordinary people, Zhao Ping, an expert at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times.
Restaurants are looking for solutions such as developing wedding banquets, attracting tour groups and cooperating with group-buying websites for promotions, said Tian of Longce Think Tank.
Many restaurants believe the current anti-corruption campaign will come to an end soon, so they are reluctant to adjust their positioning, but they have underestimated the central government's anti-corruption resolution, Tian said, and stricter moves will be carried out in the next few years.
The Ministry of Commerce and the National Tourism Administration held a meeting Monday to release guidance on practicing frugality and opposing extravagance and waste in the catering industry.
Minister of Commerce Chen Deming pointed out that extravagance may bring temporary abnormal prosperity for some dining firms, but that it is not a suitable long-term practice.
Chen said catering firms should develop online meal ordering and food deliveries.
Public consumption will grow more limited, but private consumption by affluent people will become a growing market, Tian noted.
Firms need to reposition themselves, such as reducing prices to attract more ordinary consumers and offering personalized services, Zhao said.
"If they actively adjust themselves to the market, the prospects will not be that pessimistic," she noted.
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